Part of the U.S., Canada and Mexico new trade deal that started on July 1 includes provisions related to vehicle manufacturing. | Stock Photo
Part of the U.S., Canada and Mexico new trade deal that started on July 1 includes provisions related to vehicle manufacturing. | Stock Photo
Sen. Jim Burgin (R-Johnston) said that he is "excited to this historic mark" in reference to a trade agreement between the U.S., Canada and Mexico come into practice on July 1.
The Republican state senator made his comments in a July 1 Facebook post where he outlined aspects of the trade deal and also said the agreement is more fair than the previous NAFTA pact.
While the North American Free Trade Agreement (NAFTA) has been in place for more than 25 years, several changes have taken place, Burgin said.
Some of the changes deal with the automobile industry. "Under USMCA’s rules vehicles must be built with at least 75 percent of parts made in North America in order to qualify for zero tariffs, up from 62.5 percent under NAFTA,” Burgin said, adding that that 40 to 45% of a car has to be created by employees that make no less than $16 an hour.
A new chapter for USMCA will also oversee and monitor intellectual property changes, and provide assistance to small businesses.
“Additionally, USMCA removes burdensome regulations, reduces duplicative red tape, and lowers costs that will help the 30 million U.S. small businesses that employ half the private-sector workforce and create two-thirds of all new jobs, to better compete globally,” Burkin wrote.
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